Transcripts of Conference call held on May 05, 2026

Jammu & Kashmir Bank reported record FY26 net profit of INR 2,363 crores, marking the 4th consecutive year of record profitability despite challenges in its core geography. Q4 net profit grew 36% quarter-on-quarter to approximately INR 800 crores. The bank exceeded most market guidance parameters, with only a marginal NIM shortfall to 3.60% due to 125 bps RBI rate cuts and deposit competition. Business grew 13.6% with advances up 16.8% and deposits up 11.3%. Asset quality remained strong with GNPA at 2.50%, NNPA at 0.64%, and provision coverage above 90%. Return metrics surpassed guidance with RoA at 1.37% and RoE at 16.85%. Management provided conservative FY27 guidance: 12% credit growth, 10% deposit growth, 3.5% NIM, and Gross NPA below 2.25%. Employee costs are declining due to NPS shift and retirements, with Q4 run rate at INR 509 crores. The bank plans to raise INR 1,250 crores capital in FY27 ahead of ECL implementation from April 2027.